$2$ Create a new What SUP Operating Cash Payments Budget$\backslash$table$[[$What SUP$],[$Operating Cash Payments Budget,Jan,Feb,Mar,Total$],[$Operating cash payments$],[$Product sales revenue,$150,000,165,000,175,000,490,000],[$Purchases$],[$Cost of expected sales$],[$Required ending inventory$],[$Beginning inventory,$(75,000),,,],[$Purchases$],[$Current monthly payments$],[$Subsequent monthly payments$],[$Cash payments for purchases$],[$Expenses$],[$Selling expenses,$6,000,7,000,8,000,21,000],[$General and administrative expenses,$40,000,40,000,40,000,120,000],[$Expenses$],[$Operating cash payments$],[$Assumptions$],[$Beginning inventory,$75,000,,,],[$Required ending inventory,$50\%,,,],[$Cost of expected sales$],[$Product sales expected in April,$180,000,,,]]$

Using the ch$6-03$ file to start your work, create a worksheet similar to

the one created in this chapter to budget operating cash payments by

month for $3$ months. Place assumption information in the cells provided,

and define and use names extensively. Product sales revenue of

$$150,000,$$$165,000,$$$175,000,$ and $$180,000$ is expected in January,

February, March, and April respectively. Purchases cost $60$ percent of

product sales. The company would like to maintain an ending inventory

equal to $50$ percent of the next month's cost of sales. At the beginning

of January, the company had $$75,000$ in inventory and $$15,000$ in

accounts payable; $90$ percent of a month's purchases are paid in the cur$-$

rent month, with the remaining paid in the following month. Selling

expenses are expected to be $$6,000,$$$7,000,$ and $$8,000$ in January, Feb$-$

ruary, and March $($respectively$),$ while general and administrative

expenses are expected to remain constant at $$40,000$ per month. All

expenses are paid in the month incurred. Use Excel's grouping feature to

group purchases, payments for purchases, and expense rows together and

to group the three monthly columns together. Save your file as ch$6-$

$03\_$student$\_$name $($replacing student$\_$name with your name$).$